This document provides a business plan for a dairy farming operation. It outlines how dairy farming can provide supplemental income and employment for small/marginal farmers. The plan then discusses the mission statement, which is to produce high quality milk and byproducts through organic farming practices. It also describes the various products that will be produced from the dairy such as milk, fertilizers from cow dung and urine. Finally, it presents budgets, financial projections, and a SWOT analysis for the viability and sustainability of the dairy business.

1. DAIRY FARMING business plan
Dairying is an important source of subsidiary income to small/marginal
farmers and agricultural labourers. In addition to milk, the manure from
animals provides a good source of organic matter for improving soil fertility
and crop yields. The bio gas from the dung is used as fuel for domestic
purposes as also for running engines for drawing water from well. The
surplus fodder and agricultural by-products are gainfully utilised for feeding
the animals. Almost all draught power for farm operations and
transportation is supplied by bullocks. Since agriculture is mostly seasonal,
there is a possibility of finding employment throughout the year for many
persons through dairy farming. Thus, dairy also provides employment
throughout the year. The main beneficiaries of dairy programmes are
small/marginal farmers and landless labourers.

2. Mission Statement
Our mission is to produce high quality milk and by products, organic
manure bio fertilizers and other products from cowdung and cowurin,
promote organic farming ,processing and convert the produce in to value
added products and market it, in a way that provides an adequate income
for our member farmers.
ORGANIC FARMING
 To facilitate, encourage and promote development of organic
agriculture in the country.
 To encourage production and use of organic and biological sources of
nutrients like biofertilizers, organic manure, compost for sustained
soil health and fertility and improving soil organic carbon and to
promote production and use of biopesticides, bio-control agents etc as
alternative inputs in organic farming.
 To formulate and define standards for other unregulated organic and
biological inputs and bring them under quality control mechanism,
define/upgrade standards and testing protocols.
 Develop, maintain, undertake regular efficacy testing and ensure
steady supply of mother cultures of bio fertilizer and other beneficial
microorganisms for nutrient mobilization and plant protection to the
biological input production industry.
 To organize regular trainings on organic system and on-farm resource
management.
 Awareness creation through seminars/conferences/trade fairs and
publicity through print and electronic media.
PRODUCTS AND SERVICES
mainly concentrates on the production of:
I. MILK:
Presently the company will supply the natural milk to local farmers
e public at a reasonable rate. The additional milk
if available will be given to the local co-operative milk societies.

3. 2. BY-PRODUCTS OF COW DUNG & COW URINE
 Vibhoothi
 Organic fertilizers
 jeevamritham
 panchagavyam
 Aerobic compost .
 Distillation of cow urine.
SWOT Analysis:
With the assistance of NABARD we completed a
Strengths/Weaknesses/Opportunities/ Threats analysis of our farm
operation. The following summarizes the results of our analysis.
Strengths
 Willingness to learn and change farm practices, and to adapt to
improve farm operations
 Lack of the availability of milk in our area Weaknesses
 Lack of knowledge on legal issues relating to cow/equipment transfer
 Lack of experience working with farm financial records Opportunities
 Strong local dairy community with business support infrastructure in
place
 Dominated by unorganized sector
 Marketed with Unhygienic production

4.  Energy inefficient process
 Inconsistent quality
 Low shelf-life
Threats
 Availability of good rental crop land is decreasing due to area
development pressures
 Good/dependable farm labor is difficult to find and keep
 Farm operating costs are increasing at a faster level than milk prices.
 Historical low prices and volatility of milk market makes it difficult to
maintain (and plan for) a viable dairy operation.
MARKETING PLAN
Through outlets in nearest town area
Through eco-shops
Through Joint Liability Groups
Through Share holders (farmers)
Through super market
Through Hotels and teashops
Through Service Co-Operative Banks.
Dairy Units: Financial Outlay
Twenty cow unit Components
and expenses
Sl no Items Amount
(in lakhs)
1 Cost of animal @ Rs.45,000 x 20 nos. 9.00
2 Transportation cost @ Rs.1000 / cow x 20 0.20

5. 3 Cattle shed construction @ Rs. 250x 1500 sq. ft x75 sq
ft/animal
3.75
4 Veterinary aid 0.10
5 Insurance for 18 Months @ 7% premium 0.07
6 Cost of Cattle Feed for the initial 60 days
12 ltrs/day x 20 animals x 60 days x 0.4 kg/ltr x
Rs.13/kg of cattle feed
0.75
7 Milking Equipments 0.50
8 Ground Mat for Cows @ Rs 1500 x 20 0.30
9 Pump House ,Power Connection & Electrical
Equipments
0.50
10 Cost of Utensils & other eqipments 0.25
11 Miscellaneous 0.10
Total 15.52
Heifer Unit
Sl. No Item Outlay (in
lakhs)
1 Cost of heifer @ Rs 10,000 x 20 2.00
2 Transportation cost @ Rs.1000/heifer x 20 0.20

6. 3 Cattle shed, store room, Dung pit etc @ 250 x 400 1.00
square feet
4 Feed cost for 545 days @ 1.5kg/animal/day @ Rs.13/kg 2.12
5 Insurance for 18 month premium 0.16
6 * Fodder cultivation – minimum one hectare land 0.80
7 Veterinary care, de worming, feed supplements 0.14
8 Miscellaneous 0.02
Total 6.44
Fodder Cultivation:
Land preparation- 15 man days 0.06
Basal fertilization 0.04
Planting Material cost 0.03

7. Planting Labour 0.05
Top dressing 0.02
Weeding 0.20
Total 0.40
Mini Organic Fertilizer/Bio-Fertilizer Unit with Cow Urine Distillation
& Vibhuthi Production Unit
Sl:No: Items Amount in
Lakhs
1 Cow Dung Dewatering & Powdering Machine 2.25
2 Utensils for Vibhuthi making 0.14
3 Cow Urine Distillation equipments 0.25
Total Rs in Lakhs 2.64
ConsolidatedBudget:(in Lakhs)
Sl:No: Receipts Items Payment Amount
1 From Share Capital 25.0 Dairy Unit Cost 15.52
2 Heifer Unit Cost 6.44
3 Fodder Cultivation 0.40
4 Bio-Ferilizer/Organic
Fertiluizer & Urine Distillation
Unit
2.64
Total Rs in Lakhs 25.00 Total Rs in Lakhs 25.00
The list of items included in the Budget:
1. Milk cans
2. Rubber mat
3. Biogas plant
4. Organic manure – vermin compostmanufacturing unit.

8. Income & Expenditure from DAIRY (Average per month)
Year Lactation Days
Dry Days
Income from sale
of
Expenditure Net
Income
I
Batch
II
Batch
Total I
Batch
II
Batch
Total Milk Total Feed Insurance Others Total
I 250 180 430 110 -- 110 150 ltx
30
30/- 135000 38250 1750 45000 85000 50000
II (8
Months)
280 240 520 80 120 200 200x30 30 180000 38250 1750 45000 85000 95000
Assumptions :
Lactation cycle is 280 days in milk + 120 dry days
1. Average milk yield - 10 lit/lact.day.
2. Selling price of milk - Rs.30/lit
3. Sale of manure - Rs.300/ini/year
4. Value of animal - Rs.3000 at end of 18 Month.
5. Insurance - 7% of value of animal
6. Vet. aid - Rs.500/animal
Feeding Cost:
Sr.
No. Item
Lact. Day Dry Day
Qty. Price Qty. Price
1. Concentrate @ Rs.6/Kg. Kg Rs Kg Rs
a. 1.0 6.00 1.0 6.00

9. b. Production 2.0 12.00 -- --
c. Pregnancy -- -- 0.5 3.00
2. Dry Fodder @ Rs.o.5/Kg. 5.0 2.50 5.0 2.50
3. Green fodder @Rs.0.70/Kg. 15.0 3.75 15.0 3.75
27.25 15.25
C. i) Feeding Schedule
Type of feed
Lactation Dry
Price
(Rs.)
Qty. (kg) Cost Per Day (Rs.) Qty.
(kg)
Cost Per
Day (Rs.)
Concentr
ate Feed
6
150
1.5 40
Green
Fodder
40
160
40 160
Dry
Fodder 6 60 5 10
Income & Expenditure from Cow Dung,Cow Urine and other products
Year Organic-Fertilizer
in Mt
Incomefrom Sale
of Organic-
Fertilizer in lakhs
Income
from sale
of
Vibhuthy
Income
from
sale of
Cow
Urine
Expenditure Net
Income
1st
Batch
11nd
Batch
Total 1st
Batch
11nd
Batch
Total Distillation Labour
cost for
vibhoothi
Labour
cost for
Organic
fertilizer
Total

10. I 16.2mt 10.8mt 27mt 1.62 1.08 2.7 0.01 400rs
per
kg
0.08 40rs
per
litre
0.02 0.015 0.65 0.68 2.02
Assumptions :
Average fertilizer in mt: 27mt
Average selling price of fertilizers:10000rs per mt
Distillation charges per month=1250rs
Labour cost for vibhoothi for 90 days @ the rate of 250rs per day =22500
Labour cost for organic fertilizer for 260 days @ the rate of 250rs per day =
65000rs